Mortgage rates have decreased, and it’s not just would-be homeowners applying for mortgage loans, current homeowners are jumping in with refinance applications as well. In fact, “Applications to refinance a home loan jumped 58% last week.”*
Why the jump in refi applications? “The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, decreased to 6.39% from 6.49%.”
What’s unique about this wave of refinance activity is that, “’Homeowners with larger loans jumped first, as the average loan size on refinances reached its highest level in the 35-year history of our survey,’ said Mike Fratantoni, senior vice president and chief economist at the MBA.”
Homeowners with adjustable-rate mortgages (ARMs) also made a strong showing, with ARMs accounting for 12.9% of total refinance applications—the highest level since 2008.
What does this mean for you? It depends.
If you are happy in your home but think you could benefit from the recent drop in rates, now may be a good time to speak with your lender about refinancing options.
If you are thinking about purchasing a home and are curious how even a 0.1% change in mortgage rates could affect your monthly payment, reach out to us. We can connect you with a lender who will show you exactly how the numbers work in your favor.
If you are a homeowner considering putting your home on the market, this is also good news. Lower mortgage rates tend to stimulate buyer activity, which could increase demand for your home.
Not sure where to start? Connect with us, we’d love to help you navigate the next steps and give you a clear picture of what’s ahead.
